----

|        |                                                                                                                                                                                                           |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | PricewaterhouseCoopers LLPChartered AccountantsPricewaterhouseCoopers Place250 Howe Street, Suite 700Vancouver, British ColumbiaCanada V6C 3S7Telephone +1 604 806 7000Facsimile +1 604 806 7806www.pwc.com/ca |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Consolidated Statements of Loss, Comprehensive Loss and Deficit(Expressed in Thousands of Canadian Dollars, Except Share Data) |

| December 31,                             |   |      |   | 2010   |     |   | 2009   |   |
|------------------------------------------|--------|-----------|--------|--------|----------|--------|--------|--------|
|                                     |   |      |   |   |     |   |   |   |
| Assets                                   |   |      |   |   |     |   |   |   |
|                                     |   |      |   |   |     |   |   |   |
| Current                                  |   |      |   |   |     |   |   |   |
| Cash and cash equivalents                |   | (Note 7)  |   | $      | 46,102   |   |   | $      | 465 |   |
| Amounts receivable and prepaid expenses  |   |      |   |   | 485      |   |   |   | 127 |   |
| Due from related party                   |   | (Note 14) |   |   | 22       |   |   |   | 249 |   |
|                                     |   |      |   |   | 46,609   |   |   |   | 841 |   |
|                                     |   |      |   |   |     |   |   |   |   |   |
| Property and equipment                   |   | (Note 8)  |   |   | 287      |   |   |   | 88 |   |
| Mineral properties                       |   | (Note 9)  |   |   | 3,354    |   |   |   | 3,354 |   |
|                                     |   |      |   | $      | 50,250   |   |   | $      | 4,283 |   |
|                                     |   |      |   |   |     |   |   |   |   |   |
| Liabilities                              |   |      |   |   |     |   |   |   |   |   |
|                                     |   |      |   |   |     |   |   |   |   |   |
| Current                                  |   |      |   |   |     |   |   |   |   |   |
| Accounts payable and accrued liabilities |   |      |   | $      | 2,269    |   |   | $      | 1,435 |   |
| Due to related parties                   |   | (Note 14) |   |   | 88       |   |   |   | - |   |
|                                     |   |      |   |   | 2,357    |   |   |   | 1,435 |   |
|                                     |   |      |   |   |     |   |   |   |   |   |
| Shareholders’ Equity               |   |      |   |   |     |   |   |   |   |   |
|                                     |   |      |   |   |     |   |   |   |   |   |
| Share capital                            |   | (Note 10) |   |   | 144,641  |   |   |   | - |   |
| Contributed surplus                      |   | (Note 13) |   |   | 11,168   |   |   |   | 77,599 |   |
| Deficit                                  |   |      |   |   | (107,916 | )      |   |   | (74,751 | ) |
|                                     |   |      |   |   | 47,893   |   |   |   | 2,848 |   |
|                                     |   |      |   | $      | 50,250   |   |   | $      | 4,283 |   |

| “Eric Roth”     |   | Director |
|-----------------------------|--------|----------|
|                        |   |     |
| “George Lawton” |   | Director |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Consolidated Statements of Loss, Comprehensive Loss and Deficit(Expressed in Thousands of Canadian Dollars, Except Share Data) |

| For the years ended December 31,                                |   |                            |   | 2010   |       |   | 2009   |   |
|-----------------------------------------------------------------|--------|---------------------------------|--------|--------|------------|--------|--------|--------|
|                                                            |   |                            |   |   |       |   |   |   |
| Income                                                          |   |                            |   |   |       |   |   |   |
| Interest income                                                 |   |                            |   | $      | 211        |   |   | $      | - |   |
|                                                            |   |                            |   |   |       |   |   |   |   |   |
| Expenses                                                        |   |                            |   |   |       |   |   |   |   |   |
| Accounting and audit                                            |   |                            |   |   | 359        |   |   |   | 238 |   |
| Administration salaries and consulting                          |   | (Note 11)                       |   |   | 1,339      |   |   |   | 735 |   |
| Directors’ fees                                           |   | (Note 11)                       |   |   | 2,033      |   |   |   | 789 |   |
| Foreign exchange gain                                           |   |                            |   |   | (90        | )      |   |   | (418 | ) |
| General and administration                                      |   |                            |   |   | 436        |   |   |   | 416 |   |
| Legal fees                                                      |   |                            |   |   | 146        |   |   |   | 175 |   |
| Management fees                                                 |   | (Note 11)                       |   |   | 3,756      |   |   |   | 1,436 |   |
| Mineral property exploration expenditures                       |   | (Notes 9 and 11) |   |   | 24,474     |   |   |   | 10,532 |   |
| Shareholder communications                                      |   | (Note 11)                       |   |   | 639        |   |   |   | 468 |   |
| Stock exchange listing and filing fees                          |   |                            |   |   | 284        |   |   |   | 150 |   |
|                                                            |   |                            |   |   | 33,376     |   |   |   | 14,521 |   |
|                                                            |   |                            |   |   |       |   |   |   |   |   |
| Net loss and comprehensive loss for the year                    |   |                            |   | $      | 33,165     |   |   | $      | 14,521 |   |
|                                                            |   |                            |   |   |       |   |   |   |   |   |
| Deficit at beginning of the year                                |   |                            |   |   | 74,751     |   |   |   | 60,230 |   |
|                                                            |   |                            |   |   |       |   |   |   |   |   |
| Deficit at end of the year                                      |   |                            |   | $      | 107,916    |   |   | $      | 74,751 |   |
|                                                            |   |                            |   |   |       |   |   |   |   |   |
| Basic & diluted loss per common share                       |   |                            |   | $      | (0.42      | )      |   | $      | (0.19 | ) |
|                                                            |   |                            |   |   |       |   |   |   |   |   |
| Weighted average number of  common shares outstanding |   |                            |   |   | 78,351,947 |   |   |   | 74,755,898 |   |

----

| Extorre Gold Mines Limited                                                                          |
|-----------------------------------------------------------------------------------------------------|
| Consolidated Statements of Cash Flow(Expressed in Thousands of Canadian Dollars, Except Share Data) |

| For the years ended December 31,                                                                                                                                            |   | 2010   |    |   | 2009   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                                                                                                        |   |   |    |   |   |   |
| Operating Activities                                                                                                                                                        |   |   |    |   |   |   |
| Net loss for the year                                                                                                                                                       |   | $      | (33,165 | )      |   | $      | (14,521 | ) |
|                                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Non-cash items:                                                                                                                                                             |   |   |    |   |   |   |   |   |
| Amortization                                                                                                                                                                |   |   | 154     |   |   |   | 106 |   |
| Gain on sale of property and equipment                                                                                                                                      |   |   | -       |   |   |   | (11 | ) |
| Stock based compensation   (Note 11)                                                                                                                         |   |   | 8,604   |   |   |   | 3,039 |   |
|                                                                                                                                                                        |   |   | (24,407 | )      |   |   | (11,387 | ) |
|                                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Changes in non-cash working capital items:                                                                                                                                  |   |   |    |   |   |   |   |   |
| Amounts receivable and prepaid expenses                                                                                                                                     |   |   | (358    | )      |   |   | (72 | ) |
| Due from related parties                                                                                                                                                    |   |   | 227     |   |   |   | - |   |
| Due to related parties                                                                                                                                                      |   |   | 88      |   |   |   | - |   |
| Accounts payable and accrued liabilities                                                                                                                                    |   |   | 834     |   |   |   | (97 | ) |
|                                                                                                                                                                        |   |   | (23,616 | )      |   |   | (11,556 | ) |
|                                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Financing Activities                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Issue of share capital for cash   (Note 10)                                                                                                                  |   |   | 42,404  |   |   |   | - |   |
| Share issue costs                         (Note 10) |   |   | (2,595  | )      |   |   | - |   |
| Funding provided by Exeter      (Note 1)                                                                                                      |   |   | 29,797  |   |   |   | 11,705 |   |
|                                                                                                                                                                        |   |   | 69,606  |   |   |   | 11,705 |   |
| Investing Activities                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Acquisition of property and equipment                                                                                                                                       |   |   | (353    | )      |   |   | (98 | ) |
|                                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                                                                                   |   |   | 45,637  |   |   |   | 51 |   |
|                                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Cash and cash equivalents – beginning of the year                                                                                                                     |   |   | 465     |   |   |   | 414 |   |
|                                                                                                                                                                        |   |   |    |   |   |   |   |   |
| Cash and cash equivalents – end of the year                                                                                                                           |   | $      | 46,102  |   |   | $      | 465 |   |

----

| Extorre Gold Mines LimitedConsolidated Statements of Shareholders’ Equity(Expressed in Thousands of Canadian Dollars, Except Share Data) |
|------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                           |   | Issued Share Capital |       |   |   |   |    |                |   |   |     |   |
|--------------------------------------------------------------------------------|--------|----------------------|------------|--------|--------|--------|---------|---------------------|--------|--------|----------|--------|
|                                                                           |   | Number ofShares      |       |   | Amount |   |    | Contributed Surplus |   |   | Deficit  |   |   | TotalShareholders'Equity |   |
| Balance at December 31, 2008                                                   |   |                 | -          |   |   | $      | -       |                |   | $      | 62,606   |   |   | $ | (60,230 | ) |   | $ | 2,376 |   |
|                                                                           |   |                 |       |   |   |   |    |                |   |   |     |   |   |   |   |   |   |   |   |   |
| Additions during the year:                                                     |   |                 |       |   |   |   |    |                |   |   |     |   |   |   |   |   |   |   |   |   |
| - Funding provided by and expenses paid by Exeter                              |   |                 | -          |   |   |   | -       |                |   |   | 11,954   |   |   |   | - |   |   |   | 11,954 |   |
| - Stock based compensation allocated from Exeter                               |   |                 | -          |   |   |   | -       |                |   |   | 3,039    |   |   |   | - |   |   |   | 3,039 |   |
| - Net loss for the year                                                        |   |                 | -          |   |   |   | -       |                |   |   | -        |   |   |   | (14,521 | ) |   |   | (14,521 | ) |
|                                                                           |   |                 |       |   |   |   |    |                |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009                                                   |   |                 | -          |   |   | $      | -       |                |   | $      | 77,599   |   |   | $ | (74,751 | ) |   | $ | 2,848 |   |
|                                                                           |   |                 |       |   |   |   |    |                |   |   |     |   |   |   |   |   |   |   |   |   |
| Additions during the year:                                                     |   |                 |       |   |   |   |    |                |   |   |     |   |   |   |   |   |   |   |   |   |
| - Issued pursuant to the Arrangement                                           |   |                 | 74,755,898 |   |   |   | 104,407 |                |   |   | (104,407 | )      |   |   | - |   |   |   | - |   |
| - Equity financing net of share issue costs                                    |   |                 | 9,100,000  |   |   |   | 37,900  |                |   |   | -        |   |   |   | - |   |   |   | 37,900 |   |
| - Transfer of net assets from Exeter                                           |   |                 | -          |   |   |   | -       |                |   |   | 27,947   |   |   |   | - |   |   |   | 27,947 |   |
| - Funding provided and expenses paid by Exeter                                 |   |                 | -          |   |   |   | -       |                |   |   | 1,850    |   |   |   | - |   |   |   | 1,850 |   |
| - Stock based compensation allocated from Exeter                               |   |                 | -          |   |   |   | -       |                |   |   | 826      |   |   |   | - |   |   |   | 826 |   |
| - Exercise of warrants                                                         |   |                 | 250,729    |   |   |   | 316     |                |   |   | -        |   |   |   | - |   |   |   | 316 |   |
| - Exercise of stock options                                                    |   |                 | 3,367,000  |   |   |   | 1,593   |                |   |   | -        |   |   |   | - |   |   |   | 1,593 |   |
| - Contributed surplus allocated on exercise of  warrants and options |   |                 | -          |   |   |   | 948     |                |   |   | (948     | )      |   |   | - |   |   |   | - |   |
| - Agent ́s warrants                                                        |   |                 | -          |   |   |   | (523    | )                   |   |   | 523      |   |   |   | - |   |   |   | - |   |
| - Stock based compensation recognized                                          |   |                 | -          |   |   |   | -       |                |   |   | 7,778    |   |   |   | - |   |   |   | 7,778 |   |
| - Net loss for the year                                                        |   |                 | -          |   |   |   | -       |                |   |   | -        |   |   |   | (33,165 | ) |   |   | (33,165 | ) |
|                                                                           |   |                 |       |   |   |   |    |                |   |   |     |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                                   |   |                 | 87,473,627 |   |   | $      | 144,641 |                |   | $      | 11,168   |   |   | $ | (107,916 | ) |   | $ | 47,893 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 1. | Transfer of Assets |
|----|--------------------|

|                                                 |   | March 24,2010 |   |
|------------------------------------------------------|--------|---------------|--------|
|                                                 |   |          |   |
| Cash and cash equivalents                            |   | $             | 25,498 |   |
| Amounts receivables and prepaid expenses             |   |          | 183    |   |
| Due from related party                               |   |          | 238    |   |
| Long term assets related to discontinued operations: |   |          |   |   |
| Property and equipment                               |   |          | 169    |   |
| Mineral properties                                   |   |          | 3,354  |   |
| Accounts payable and accrued liabilities             |   |          | (1,495 | ) |
| Net assets transferred to Extorre                    |   | $             | 27,947 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 2. | Nature of Business |
|----|--------------------|

| 3. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

|   | a) | Basis of Presentation |
|--------|----|-----------------------|

|                                                          | Incorporation          |   | Percentage ofOwnership |   |
|---------------------------------------------------------------|------------------------|--------|------------------------|--------|
| Estelar Resources Limited (“Estelar”)   | British Virgin Islands |   |                   | 100    | % |
| Cognito Limited (“Cognito”)                       | British Virgin Islands |   |                   | 100    | % |

|   | b) | Mineral property costs |
|--------|----|------------------------|

|   | c) | Mineral property exploration expenditures |
|--------|----|-------------------------------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 3. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | d) | Impairment of mineral property |
|--------|----|--------------------------------|

|   | e) | Asset retirement obligations |
|--------|----|------------------------------|

|   | f) | Cash and cash equivalents |
|--------|----|---------------------------|

|   | g) | Translation of foreign currencies |
|--------|----|-----------------------------------|

|   | i) | Monetary items, at the rate of exchange prevailing at the consolidated balance sheet date; |
|--------|----|--------------------------------------------------------------------------------------------|

|   | ii) | Non-monetary items, at the historical rate of exchange; and |
|--------|-----|-------------------------------------------------------------|

|   | iii) | Exploration and administration costs, at the average rate during the period in which the transaction occurred. |
|--------|------|----------------------------------------------------------------------------------------------------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 3. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | h) | Loss per share |
|--------|----|----------------|

|   | i) | Property and equipment |
|--------|----|------------------------|

| Canada                       |         |                                                                                                              |
|------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------|
| Computer equipment           |         | Declining balance -  30%                                                                                |
| Computer software            |         | Declining balance -  50%                                                                                |
|                         |         |                                                                                                              |
| Argentina                    |         |                                                                                                              |
| Computer equipment           |         | Straight-line              - 3-6 years |
| Computer software            |         | Straight-line              - 2 years        |
| Equipment including vehicles |    | Straight-line              - 3-7 years      |

|   | j) | Share issue costs |
|--------|----|-------------------|

|   | k) | Stock-based compensation |
|--------|----|--------------------------|

|   | l) | Income taxes |
|--------|----|--------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 3. | Significant Accounting Policies (Continued) |
|----|---------------------------------------------|

|   | m) | Use of estimates |
|--------|----|------------------|

|   | n) | Financial instruments |
|--------|----|-----------------------|

| 4. | Changes in accounting policies and new accounting developments |
|----|----------------------------------------------------------------|

|   | a) | Business Combinations, Consolidated Financial Statements and Non-Controlling Interests, Sections1582, 1601 and 1602 |
|--------|----|---------------------------------------------------------------------------------------------------------------------|

|   | b) | Conforming amendments |
|--------|----|-----------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 5. | Management of Capital |
|----|-----------------------|

| 6. | Financial Instruments |
|----|-----------------------|

|   | a)  | Fair Value |
|--------|----------|------------|

|                                            |   | 2010           |   |   | 2009      |   |
|-------------------------------------------------|--------|----------------|--------|--------|-----------|--------|
|                                            |   | Carryingamount |   |   | Fairvalue |   |   | Carryingamount |   |   | Fairvalue |   |
| Financial Assets                                |   |           |   |   |      |   |   |   |   |   |   |   |
| Held for trading                                |   |           |   |   |      |   |   |   |   |   |   |   |
| Cash and cash equivalents                       |   | $              | 46,102 |   |      | $      | 46,102 | (i) |   | $ | 465 |   |   | $ | 465 |   |
| Amounts receivable – at amortized cost    |   | $              | 90     |   |      | $      | 90 | (ii) |   | $ | - |   |   | $ | - |   |
| Due from related parties                        |   | $              | 22     |   |      | $      | 22 | (ii) |   | $ | 249 |   |   | $ | 249 |   |
| Financial Liabilities – at amortized cost |   |           |   |   |      |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued liabilities        |   | $              | 2,269  |   |      | $      | 2,269 | (ii) |   | $ | 1,435 |   |   | $ | 1,435 |   |
| Due to related parties                          |   | $              | 88     |   |      | $      | 88 | (ii) |   | $ | - |   |   | $ | - |   |

|   | (i) | The Company’s cash and cash equivalents are classified within Level 2 of the fair value hierarchy because they are valued using quoted market prices. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | The carrying amount of amounts receivable, accounts payable and accrued liabilities and due to related parties approximates fair value due to their short to maturity. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 6. | Financial Instruments (Continued) |
|----|-----------------------------------|

|   | b) | Financial Risk Management |
|--------|----|---------------------------|

| 2010(in thousands)                       |   |
|------------------------------------------|--------|
|                                     |   | Argentine Pesos |   |   | US Dollars |   |   | Australian Dollars |   |
| Cash and cash equivalents                |   |   | 3,524 |   |   |   | 2,031 |   |   |   | - |   |
| Amounts receivable                       |   |   | 1,366 |   |   |   | - |   |   |   | - |   |
| Accounts payable and accrued liabilities |   |   | (7,198 | ) |   |   | (267 | ) |   |   | (198 | ) |
| Net balance                              |   |   | (2,308 | ) |   |   | 1,764 |   |   |   | (198 | ) |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Equivalent in Canadian Dollars           |   |   | (559 | ) |   |   | 1,755 |   |   |   | (202 | ) |
| Rate to convert to $1.00 CDN             |   |   | 0.2423 |   |   |   | 0.9946 |   |   |   | 1.018 |   |

| 2009(in thousands)                       |   |
|------------------------------------------|--------|
|                                     |   | Argentine Pesos |   |   | US Dollars |   |   | Australian Dollars |   |
| Cash and cash equivalents                |   |   | 1,714 |   |   |   | - |   |   |   | - |   |
| Amounts receivable                       |   |   | 468 |   |   |   | - |   |   |   | - |   |
| Accounts payable and accrued liabilities |   |   | (5,289 | ) |   |   | - |   |   |   | - |   |
| Net balance                              |   |   | (3,107 | ) |   |   | - |   |   |   | - |   |
|                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Equivalent in Canadian Dollars           |   |   | (843 | ) |   |   | - |   |   |   | - |   |
| Rate to convert to $1.00 CDN             |   |   | 0.2713 |   |   |   |   |   |   |   |   |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 6. | Financial Instruments (Continued) |
|----|-----------------------------------|

| 7. | Cash and Cash Equivalents |
|----|---------------------------|

|                               |   | 2010   |   |   | 2009   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|
| Cash                               |   | $      | 3,985  |   |   | $      | 465 |   |
| Investment Savings Accounts        |   |   | 18,029 |   |   |   | - |   |
| Guaranteed Investment Certificates |   |   | 24,088 |   |   |   | - |   |
| Total                              |   | $      | 46,102 |   |   | $      | 465 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 8. | Property and Equipment |
|----|------------------------|

|                         |   | 2010   |   |   | 2009                    |   |
|------------------------------|--------|--------|--------|--------|-------------------------|--------|
|                    |   | Cost   |   |   | AccumulatedAmortization |   |   | Net Book Value |   |   | Cost |   |   | AccumulatedAmortization |   |   | Net Book Value |   |
| Canada                       |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Computer equipment           |   | $      | 27     |   |                    | $      | 4 |   |   | $ | 23 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
| Computer software            |   |   | 7      |   |                    |   | 1 |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                         |   |   | 34     |   |                    |   | 5 |   |   |   | 29 |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Argentina                    |   |   |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Computer equipment           |   |   | 31     |   |                    |   | 17 |   |   |   | 14 |   |   |   | 13 |   |   |   | 11 |   |   |   | 2 |   |
| Computer software            |   |   | 62     |   |                    |   | 48 |   |   |   | 14 |   |   |   | 43 |   |   |   | 40 |   |   |   | 3 |   |
| Equipment including vehicles |   |   | 538    |   |                    |   | 308 |   |   |   | 230 |   |   |   | 256 |   |   |   | 173 |   |   |   | 83 |   |
|                         |   |   | 631    |   |                    |   | 373 |   |   |   | 258 |   |   |   | 312 |   |   |   | 224 |   |   |   | 88 |   |
|                         |   | $      | 665    |   |                    | $      | 378 |   |   | $ | 287 |   |   | $ | 312 |   |   | $ | 224 |   |   | $ | 88 |   |

| 9. | Mineral Properties - Acquisition and Exploration Costs |
|----|--------------------------------------------------------|

|   | a) | Acquisition Costs |
|--------|----|-------------------|

|                |   | 2010 and 2009                |   |
|---------------------|--------|------------------------------|--------|
|                |   | Balance beginningof the year |   |   | Additions |   |   | Balance end of theyear |   |
| Don Sixto and Other |   | $                            | 3,226  |   |   | $ | - |   |   | $ | 3,226 |   |
| CVSA Properties     |   |                         | 128    |   |   |   | - |   |   |   | 128 |   |
|                |   | $                            | 3,354  |   |   | $ | - |   |   | $ | 3,354 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 9. | Mineral Properties - Acquisition and Exploration Costs (Continued) |
|----|--------------------------------------------------------------------|

|   | b) | Exploration Costs |
|--------|----|-------------------|

|                                             |   | CVSAProperties |   |   | Don SixtoProjectand Other |   |   | 2010   |   |   | 2009   |   |
|--------------------------------------------------|--------|----------------|--------|--------|---------------------------|--------|--------|--------|--------|--------|--------|--------|
| Assays                                           |   | $              | 1,190  |   |                      | $      | 105    |   |   | $      | 1,295  |   |   | $ | 490 |   |
| Consultants and contractors                      |   |           | 276    |   |                      |   | -      |   |   |   | 276    |   |   |   | 82 |   |
| Drilling                                         |   |           | 6,912  |   |                      |   | 379    |   |   |   | 7,291  |   |   |   | 3,571 |   |
| Engineering                                      |   |           | 606    |   |                      |   | -      |   |   |   | 606    |   |   |   | 173 |   |
| Environmental                                    |   |           | 720    |   |                      |   | 138    |   |   |   | 858    |   |   |   | 208 |   |
| Field camp                                       |   |           | 1,732  |   |                      |   | 79     |   |   |   | 1,811  |   |   |   | 735 |   |
| Geological *                                     |   |           | 1,841  |   |                      |   | 107    |   |   |   | 1,948  |   |   |   | 916 |   |
| Geophysical                                      |   |           | 196    |   |                      |   | 183    |   |   |   | 379    |   |   |   | - |   |
| Hydrology                                        |   |           | 479    |   |                      |   | -      |   |   |   | 479    |   |   |   | - |   |
| Infrastructure                                   |   |           | 67     |   |                      |   | -      |   |   |   | 67     |   |   |   | - |   |
| IVA tax                                          |   |           | 2,569  |   |                      |   | (442   | )      |   |   | 2,127  |   |   |   | 767 |   |
| Legal and title                                  |   |           | 127    |   |                      |   | 94     |   |   |   | 221    |   |   |   | 170 |   |
| Metallurgical*                                   |   |           | 582    |   |                      |   | -      |   |   |   | 582    |   |   |   | 72 |   |
| Office operations                                |   |           | 869    |   |                      |   | 193    |   |   |   | 1,062  |   |   |   | 551 |   |
| Resource development                             |   |           | 374    |   |                      |   | 4      |   |   |   | 378    |   |   |   | 459 |   |
| Travel                                           |   |           | 2,061  |   |                      |   | 199    |   |   |   | 2,260  |   |   |   | 822 |   |
| Wages and benefits*                              |   |           | 2,525  |   |                      |   | 309    |   |   |   | 2,834  |   |   |   | 1,516 |   |
| Exploration costs for the year                   |   | $              | 23,126 |   |                      | $      | 1,348  |   |   | $      | 24,474 |   |   | $ | 10,532 |   |
| Cumulative exploration costs – end of year |   | $              | 56,108 |   |                      | $      | 21,103 |   |   | $      | 77,211 |   |   | $ | 52,734 |   |

|   | * | Includes stock based compensation as reflected below: |
|--------|---|-------------------------------------------------------|

|               |   | CVSAProperties |   |   | Don SixtoProject& Other |   |   | 2010   |   |   | 2009  |   |
|--------------------|--------|----------------|--------|--------|-----------------------------|--------|--------|--------|--------|--------|-------|--------|
| Geological         |   | $              | 1,196  |   |                        | $      | 30     |   |   | $      | 1,226 |   |   | $ | 196 |   |
| Metallurgical      |   |           | 363    |   |                        |   | -      |   |   |   | 363   |   |   |   | - |   |
| Wages and benefits |   |           | 710    |   |                        |   | -      |   |   |   | 710   |   |   |   | 338 |   |
| Total              |   | $              | 2,269  |   |                        | $      | 30     |   |   | $      | 2,299 |   |   | $ | 534 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 9. | Mineral Properties - Acquisition and Exploration Costs (Continued) |
|----|--------------------------------------------------------------------|

|   | c) | Agreements |
|--------|----|------------|

|   | i) CVSA Properties - Argentina |
|--------|--------------------------------|

|   | ii) | Don Sixto – Argentina |
|--------|-----|-----------------------------|

|   | - | US$175 thousand on signing and anniversary dates to December 15, 2007; (paid) and |
|--------|---|-----------------------------------------------------------------------------------|

|   | - | US$50 thousand* on or before December 15 of each year thereafter up to and including December 15, 2014. |
|--------|---|---------------------------------------------------------------------------------------------------------|

|   | *Due to the current anti-mining legislation these payments have been suspended until the legislation is changed (see below for more details). |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 9. | Mineral Properties - Acquisition and Exploration Costs (Continued) |
|----|--------------------------------------------------------------------|

|   | iii) | Fomicruz |
|--------|------|----------|

|   | iv) | Other Properties |
|--------|-----|------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 10. | Share Capital |
|-----|---------------|

|                                                              |   | December 31, 2010 |       |
|-------------------------------------------------------------------|--------|-------------------|------------|
|                                                              |   | Number ofShares   |       |   | Amount |   |
| Issued pursuant to the Arrangement (Notes 1 and 13)               |   |              | 74,755,898 |   |   | $ | 104,407 |   |
| Issued during the year for cash:                                  |   |              |       |   |   |   |   |   |
| Equity financing                                                  |   |              | 9,100,000  |   |   |   | 40,495 |   |
| Exercise of options                                               |   |              | 3,367,000  |   |   |   | 1,593 |   |
| Exercise of warrants                                              |   |              | 250,729    |   |   |   | 316 |   |
| Contributed Surplus allocated on exercise of options and warrants |   |              | -          |   |   |   | 948 |   |
| Share issue costs                                                 |   |              | -          |   |   |   | (3,118 | ) |
| Balance, end of year                                              |   |              | 87,473,627 |   |   | $ | 144,641 |   |

| 11. | Stock Option Plan |
|-----|-------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 11. | Stock Option Plan(Continued) |
|-----|------------------------------|

|                              |   | 2010   |       |
|-----------------------------------|--------|--------|------------|
|                              |   |   |       | Weighted |   |
|                              |   |   |       | Average |   |
|                              |   | Shares |       | Exercise Price |   |
| Options granted per Arrangement * |   |   | 10,298,400 |   |   | $ | 0.69 |   |
| Cancelled                         |   |   | (100,000   | ) |   |   | 2.98 |   |
| Exercised                         |   |   | (3,367,000 | ) |   |   | 0.46 |   |
| Granted                           |   |   | 5,369,125  |   |   |   | 4.99 |   |
| Options outstanding, end of year  |   |   | 12,200,525 |   |   | $ | 2.62 |   |

| Outstanding Options |   |   | Exercisable Options |   |
|---------------------|--------|--------|---------------------|--------|
| Range ofPrices ($)  |   | Number |                |   | WeightedAverageRemaining Life(Years) |   |   | WeightedAverageExercise Price |   |   | Number |   |   | Weighted AverageExercise Price |   |
| 0.01 - 1.00*        |   |   | 4,987,400           |   |   |   | 2.30 |   |   | $ | 0.56 |   |   |   | 4,987,400 |   |   | $ | 0.56 |   |
| 1.01 - 2.00*        |   |   | 1,972,500           |   |   |   | 4.05 |   |   |   | 1.40 |   |   |   | 787,500 |   |   |   | 1.33 |   |
| 2.01 - 3.00*        |   |   | 1,542,000           |   |   |   | 4.36 |   |   |   | 2.49 |   |   |   | 784,583 |   |   |   | 2.06 |   |
| 4.01 - 5.00*        |   |   | 655,000             |   |   |   | 4.69 |   |   |   | 4.60 |   |   |   | 327,500 |   |   |   | 4.60 |   |
| 5.01 - 6.00*        |   |   | 600,000             |   |   |   | 4.69 |   |   |   | 5.06 |   |   |   | - |   |   |   | - |   |
| 6.01 +              |   |   | 2,443,625           |   |   |   | 4.96 |   |   |   | 6.77 |   |   |   | 257,813 |   |   |   | 6.80 |   |
|                |   |   | 12,200,525          |   |   |   | 3.62 |   |   | $ | 2.62 |   |   |   | 7,144,796 |   |   | $ | 1.22 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 11. | Stock Option Plan (Continued) |
|-----|-------------------------------|

| Expected annual volatility |   |        | 90.00     | % |
|----------------------------|--------|-------------|-----------|---|
| Risk-free interest rate    |   |        | 1.85-2.20 | % |
| Expected life              |   | 3-3.5 years |      |
| Expected dividend yield    |   |        | 0.0       | % |

|                                      |   | 2010   |   |   | 2009   |   |
|-------------------------------------------|--------|--------|--------|--------|--------|--------|
| Administration salaries and consulting    |   | $      | 1,002  |   |   | $      | 397 |   |
| Management fees                           |   |   | 3,205  |   |   |   | 1,215 |   |
| Directors’ fees                     |   |   | 2,033  |   |   |   | 783 |   |
| Shareholder communications                |   |   | 66     |   |   |   | 110 |   |
| Mineral property exploration expenditures |   |   | 2,298  |   |   |   | 534 |   |
| Total                                     |   | $      | 8,604  |   |   | $      | 3,039 |   |

| 12. | Warrants |
|-----|----------|

| Number |    |   | Exercise Price |   | Expiry Date |
|--------|---------|--------|----------------|--------|-------------|
|   | 455,000 |   |           |   | 5.00        |   | September 28, 2011 |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 13. | Contributed Surplus |
|-----|---------------------|

| Balance - December 31, 2009                                                                               |   | $      | 77,599   |   |
|-----------------------------------------------------------------------------------------------------------|--------|--------|----------|--------|
| Net assets contributed by Exeter (Note 1)                                                                 |   |   | 27,947   |   |
| Funding provided by and expenses paid by Exeter                                                           |   |   | 1,850    |   |
| Stock-based compensation for the period 1 January – 24 March, 2010, allocated from Exeter (Note 11) |   |   | 826      |   |
| Allocation to share capital on completion of the Arrangement (Notes 1 and 10)                             |   |   | (104,407 | )      |
| Stock based compensation recognized (Note 11)                                                             |   |   | 7,778    |   |
| Agent ́s warrants (Note 10)                                                                           |   |   | 523      |   |
| Allocation on exercise of options and warrants during the year (Note 10)                                  |   |   | (948     | )      |
| Balance – December 31, 2010                                                                         |   | $      | 11,168   |   |

| 14. | Related Party Transactions |
|-----|----------------------------|

|   | (a) | Exploration and consulting fees of $47 (2009 - $Nil, $217 allocated from Exeter) were paid or accrued to a corporation of which the Co-Chairman is a principal. As at December 31, 2010, the Company owed $Nil. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Management fees of $107 (2009 - $Nil, $146 allocated from Exeter) were paid or accrued to a corporation of which the Co-Chairman is a principal. As at December 31, 2010, the Company owed $23. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Management fees of $125 (2009 - $Nil) were paid or accrued to a corporation of which the Vice President Corporate Development and Legal Counsel is a principal. As at December 31, 2010, the Company owed $Nil. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (d) | Management fees of $67 (2009 - $Nil, $155 allocated from Exeter) were paid or accrued to a corporation controlled by the Vice-President Finance. As at December 31, 2010, the Company owed $Nil. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | Fees of $42 (2009 - $Nil) were paid or accrued to a company, of which one of the officers of the Company is a partner for legal services. As at December 31, 2010, the Company owed $4. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | Administrative fees of $252 (2009 - $Nil) for the provision of office facilities and staff to the Company, and travel expenses of $33 were paid to Exeter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | Exploration fees of $159 (2009 - $Nil, $126 allocated from Exeter) were paid or accrued to a corporation controlled by the Vice President Development. As at December 31, 2010, the Company owed $61. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 14. | Related Party Transactions(Continued) |
|-----|---------------------------------------|

| 15. | Contractual Obligations |
|-----|-------------------------|

|          |   | Payments Due by Year(in thousands) |   |
|---------------|--------|------------------------------------|--------|
|          |   | Total                              |   |   | 2011 |   |   |   | 2012-2013 |   |   |   | 2014-2016 |   |
| Office leases |   |                               |   |   |   |   |   |   |   |   |   |   |   |   |
| -Argentina    |   | $                                  | 83     |   |   | $ | 48 |   |   | $ | 35 |   |   | $ | - |   |
| -Canada (*)   |   | $                                  | 460    |   |   | $ | 84 |   |   | $ | 174 |   |   | $ | 202 |   |
| Total         |   | $                                  | 543    |   |   | $ | 132 |   |   | $ | 209 |   |   | $ | 202 |   |

| 16. | Supplemental Cash Flow Information |
|-----|------------------------------------|

|                                           |   | 2010   |   |   | 2009   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Non-cash financing activities:                 |   |   |   |   |   |   |
| Issue of warrants for agent’s commission |   | $      | 523    |   |   | $      | - |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 17. | Segmented Information |
|-----|-----------------------|

| December 31, 2010                             |   | Canada |   |   | Argentina |   |   | Total  |   |
|-----------------------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
|  Cash and cash equivalents               |   | $      | 45,248 |   |      | $      | 854    |   |   | $ | 46,102 |   |
|  Amounts receivable and prepaid expenses |   |   | 154    |   |      |   | 331    |   |   |   | 485 |   |
|  Due from related party                  |   |   | 22     |   |      |   | -      |   |   |   | 22 |   |
|  Property and equipment                  |   |   | 29     |   |      |   | 258    |   |   |   | 287 |   |
|  Mineral properties                      |   |   | -      |   |      |   | 3,354  |   |   |   | 3,354 |   |
|                                          |   |   | 45,453 |   |      |   | 4,797  |   |   |   | 50,250 |   |
|  Current Liabilities                     |   |   | (613   | )      |      |   | (1,744 | )      |   |   | (2,357 | ) |
|                                          |   | $      | 44,840 |   |      | $      | 3,053  |   |   | $ | 47,893 |   |
| Net loss - 2010                               |   | $      | 8,537  |   |      | $      | 24,628 |   |   | $ | 33,165 |   |

| December 31, 2009                       |   | Canada |   |   | Argentina |   |   | Total  |   |
|-----------------------------------------|--------|--------|--------|--------|-----------|--------|--------|--------|--------|
| Cash and cash equivalents               |   | $      | -      |   |      | $      | 465    |   |   | $ | 465 |   |
| Amounts receivable and prepaid expenses |   |   | -      |   |      |   | 127    |   |   |   | 127 |   |
| Due from related party                  |   |   | -      |   |      |   | 249    |   |   |   | 249 |   |
| Property and equipment                  |   |   | -      |   |      |   | 88     |   |   |   | 88 |   |
| Mineral properties                      |   |   | -      |   |      |   | 3,354  |   |   |   | 3,354 |   |
|                                    |   |   | -      |   |      |   | 4,283  |   |   |   | 4,283 |   |
| Current Liabilities                     |   |   | -      |   |      |   | (1,435 | )      |   |   | (1,435 | ) |
|                                    |   | $      | -      |   |      | $      | 2,848  |   |   | $ | 2,848 |   |
| Net loss - 2009                         |   | $      | 4,306  |   |      | $      | 10,215 |   |   | $ | 14,521 |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 18. | Income Taxes |
|-----|--------------|

|                                                                 |   | 2010   |   |   | 2009   |   |
|----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net loss for the year before income tax                              |   | $      | 33,165 |   |   | $      | 14,521 |   |
| Combined federal and provincial tax rate                             |   |   | 28.50  | %      |   |   | 35.00 | % |
| Income tax recovery at statutory rates                               |   | $      | (9,452 | )      |   | $      | (5,082 | ) |
| Losses and other deductions for which no benefit has been recognized |   |   | 6,972  |   |   |   | 3,008 |   |
| Non-deductible stock-based compensation                              |   |   | 2,453  |   |   |   | 912 |   |
| Non-deductible mineral property exploration costs                    |   |   | 923    |   |   |   | 619 |   |
| Foreign exchange rate and tax rate differences                       |   |   | (932   | )      |   |   | 577 |   |
| Expiry of losses                                                     |   |   | 36     |   |   |   | 29 |   |
| Impact of tax rate reductions                                        |   |   | -      |   |   |   | (63 | ) |
| Income tax provision                                                 |   | $      | Nil    |   |   | $      | Nil |   |

|                                              |   | 2010   |    |   | 2009   |   |
|---------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Non-capital loss carry forwards – Canada    |   | $      | 718     |   |   | $      | - |   |
| Non-capital loss carry forwards – Argentina |   |   | 2,623   |   |   |   | 2,127 |   |
| Exploration and development deductions            |   |   | 16,035  |   |   |   | 11,212 |   |
| Share issue costs                                 |   |   | 519     |   |   |   | - |   |
|                                              |   |   | 19,895  |   |   |   | 13,339 |   |
| Valuation allowance                               |   |   | (19,895 | )      |   |   | (13,339 | ) |
|                                              |   | $      | Nil     |   |   | $      | Nil |   |

----

| Extorre Gold Mines Limited                                                                                                     |
|--------------------------------------------------------------------------------------------------------------------------------|
| Notes to the Consolidated Financial Statements(Expressed in Thousands of Canadian Dollars, Except Share Data)December 31, 2010 |

| 19. | Differences between Canadian and US Generally Accepted Accounting Principles |
|-----|------------------------------------------------------------------------------|

----